Friday, April 22, 2011

Is An Online Cash Advance Good or Bad?

Have You Heard of Cash Advances?

You're bound to have heard about the ability of getting a fast online cash advance from small and medium size lending institutions. The people you work with, friends and family members may have talked about it, and now that you find yourself in a cash flow situation where you are considering taking advantage of the financial help an online cash advance provides and now you need to fully understand what you are getting into so you do not end up feeling trapped in a cycle of endless borrowing.

Cash Advance Loans are Fast, Convenient and Collateral Free

A cash advance loan is a short term loan made by a private lending company. Some call it a payday loan while others may term it as a paycheck advance or just a plain cash advance. Whatever it is called, a cash advance loan is classified as a small short term loan, because the maximum amount lent out is usually less than $1,500 and is payable on or before your next payday. A cash advance loan does not require you to put up any collateral, has minimal other loan requirements, and the processing time only takes 20 minutes to an hour with the loan proceeds being deposited in your account overnight and being available to you the very next business morning. Yes, that's what makes it really fast and convenient! However, here is the catch: because a cash advance loan is collateral and hassle free, the loan interest is a bit high. The annual percentage rate (APR) can be as high as 800% but don't let that scare you. The APR is the annual percentage rate and reflects how much interest you would pay if you kept the loan out for an entire year.

Online Payday Loans Are Not Available in All States

So you may ask, is there no ceiling to the interest rate that these lending institutions charge? It all depends on what state, or city, or country you reside in and where you applied for a cash advance loan. In the United States, cash advances are regulated in each individual state and there are about 15 states that deem a payday advance loan as illegal based on their usury laws, meaning any and all interest charges beyond the regulatory interest rate cap based on an annual percentage rate (APR’s) is a violation of the law. It pays to know the basic state regulations in your area regarding interest bearing loans for your own protection before applying for a cash advance loan.

Zippy Payday Cash Has the Best Lenders
All the information you will ever need to know about Online Cash Advance Loans is available online itself. You can use Zippy Payday Cash and they will provide a listing of the best cash advance lending institutions they've been able to find that loan in your area. Zippy compared the interest charges and ask lenders about their miscellaneous cash advance loan fees and other service charges, because some lending companies may quote lower interest rates but then charge more service fees which can end up being more expensive. Zippy obtained all the necessary information regarding service fees for extor loan renewals, and how much in interest and finance charges they collect for late payments. After sifting through the lenders, we've only included the best and cheapest lenders in our network. Zippy Payday Cash also only included lenders, in their network of lenders, that show the borrower the entire cost of the loan up front and never charge service fees.

Good or Bad, It's Up To You!The whole point here is for you to have a basic understanding of how the system works and how it can affect your financial position. Being in control of everything is the key: that is why it is important to have a good grasp of what the limits are. A cash advance loan can be a good friend when there are unexpected or emergency bills that crop up and you are short of cash, but you can also let it become a bad idea when you allow it to become a bad habit. Be the master not the slave. Settle your payday advance as soon as you can and perhaps you will receive a rebate on the interest.